HomeMy Public PortalAbout04.05.2017 City Council Meeting PacketMEDINA►
SPECIAL MEETING AGENDA
MEDINA CITY COUNCIL
Wednesday, April 5, 2017
6:30 P.M.
Medina City Hall
2052 County Road 24
I. Call to Order
II. Local Board of Review and Equalization
For the purpose of reviewing and correcting the 2017 assessed property values or property classifications
in the City of Medina.
III. Adjourn
Posted 3.31.2017
TO: Medina Mayor and City Councilmembers
Scott Johnson, City Administrator
FROM: Rolf Erickson, City Assessor
DATE: March 27, 2017
RE: Local Board of Review meeting for the January 2, 2017 assessment
Minnesota law requires that the assessor value property at market value. Market value is defined by the
Minnesota Department of Revenue as:
"'Market value' means the usual selling price at the place where the property to which the term
is applied shall be at the time of assessment; being the price which could be obtained at a private
sale or an auction sale, if it is determined by the assessor that the price from the auction sale
represents an arm's-length transaction. The price obtained at a forced sale shall not be
considered."
Under current law there is no limit to the amount that the market value of a property can be increased any
year and the assessor is required to value properties on January 2nd at full market value.
AGGREGRATE PROPERTY TYPE GROWTH (Total market value growth of each property type).
Individual property changes varied.
2011 2012 2013 2014 2015 2016 2017
Residential Lakeshore -.07% 0% -1.3% +2.2% 0% NA .7%
Residential off lake -5.8% -9.4% +1.6% +3.2% +3.9% +2.3% 2.1%
Apartment 0% 0% 0% 0% +4.5% +3.2% 9.3%
Industrial 8.8%
Commercial -5% -.03% -3.6% -0.1% +.07% +3% 4.7%
Farm NA NA NA NA NA NA NA
Condo and Co-op 0 -13.2% 0 +1.1% +10% +8.2% -7.4%
Town houses 0 -2.3% -4.6% +11.5% +3.6% +3.3% 6.2%
This year the rates of Green Acres and Ag Preserve Parcels were lowered approximately 10% . The State
values are used throughout the State and they are based on purely agricultural sales from Southwestern
Minnesota. Tillable land is valued at $6,700/ac, pasture and woods are valued at $3,400/ac and wetlands
remain at $1,000/ac. The rates on the deferred Green Acres and non -Green Acre farmland remained level.
Current Assessment (2017) Current
2016 Total Market Value $1,574,356,900
2017 Total Market Value $1,656,913,200
2017 Improvements (Included in above 2017) $43,955,500
Net Increase Without improvements $+38,567,800 2.45% (2017-2016-improvmentts)
Market Value: The most probable price in terms of money which a property should bring in a competitive
and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently,
knowledgeably and assuming the price is not affected by undue stimulus.
Classification: Classification is the use of a property as defined by state law. The most common
classifications are apartment, double bungalow, triplex, commercial, industrial, farm, residential and
residential lakeshore. Homestead is also a classification.
Attached is copy of the duties and responsibilities of a Local Board of Review. Our book of sales for this
assessment is not quite ready and will be distributed by email when completed.
LOCAL BOARD OF APPEAL AND EQUALIZATION
SUMMARY OF DUTIES AND RESPONSIBILITIES
Most of the responsibilities listed under the Local Board of Appeal and Equalization are
statutory, primarily found in Minnesota Statutes 274.01.
• The first responsibility is attendance. The Local Board of Appeal and Equalization is
an official public meeting similar to a City Council meeting and cannot convene
without a quorum. In addition to the local assessor, the county assessor, or one of
his/her assistants is required to attend.
• At least one member must be present at each meeting of the Local Board of Appeal
and Equalization (beginning in 2006) that has attended an appeals and equalization
course as developed and approved by the Commissioner of Revenue. The
compliance date is February 1st of the year of the current year's meeting.
• The valuation notices shall be in writing and be sent by ordinary mail at least ten
calendar days before the meeting of the board. The valuation notice will include the
dates, places and times set for the meetings of the Local Board of Appeal and
Equalization as well as the Hennepin County Board of Appeal and Equalization.
• The meetings must be held between April 1 and May 31 each year, including
reconvene meetings. The County Assessor shall fix a day and time when the Local
Board of Appeal and Equalization shall meet. The board must complete its work and
adjourn within 20 days from the time of convening stated in the notice of the clerk,
i.e. calendar days — original night is day one.
• The clerk shall give published and posted notice of the meeting at least ten days
before the date of the meeting.
• Local Boards of Appeal and Equalization must see that all taxable property is
properly valued and classified for the current assessment year only. The board may
consider both real and personal property, and both estimated and taxable value.
Personal property is limited to mobile homes and their storage sheds, decks and other
improvements located in a manufactured home park, structures on leased public lands
and RR operating ROW, and leased buildings located on land owned by the occupant
and used as their homestead.
• If any property has been omitted, the board must correct the assessment by adding it
to the list of assessments along with its market value.
• The board may not increase or decrease by percentage all assessments in a district of
a given class of property. Changes in the aggregate to assessments are by class and
are made by the County Board of Equalization.
• The board may not make an individual market value adjustment or classification
change that would benefit the property in cases where the owner or other person
having control over the property will not permit the assessor to inspect the property
and the interior of any buildings or structures.
" A l t h o u g h t h e L o c a l B o a r d o f A p p e a l a n d E q u a l i z a t i o n h a s t h e a u t h o r i t y t o i n c r e a s e o r
d e c r e a s e i n d i v i d u a l a s s e s s m e n t s , t h e t o t a l o f s u c h a d j u s t m e n t m u s t n o t r e d u c e t h e
a g g r e g a t e a s s e s s m e n t b y m o r e t h a n o n e p e r c e n t . I f t h e t o t a l r e d u c t i o n s w o u l d l o w e r
t h e a g g r e g a t e a s s e s s m e n t b y m o r e t h a n o n e p e r c e n t , n o n e o f t h e a d j u s t m e n t s m a y b e
m a d e . T h e a s s e s s o r s h a l l c o r r e c t a n y c l e r i c a l e r r o r s o r d o u b l e a s s e s s m e n t s d i s c o v e r e d
b y t h e b o a r d w i t h o u t r e g a r d t o t h e o n e p e r c e n t l i m i t a t i o n .
" T h e l o c a l b o a r d d o e s n o t h a v e t h e a u t h o r i t y t o r e o p e n f o r m e r a s s e s s m e n t s o n w h i c h
t a x e s a r e d u e a n d p a y a b l e .
" I f a n a s s e s s m e n t w a s m a d e a f t e r t h e l o c a l b o a r d m e e t i n g o r i f a t a x p a y e r c a n e s t a b l i s h
n o t h a v i n g r e c e i v e d t h e n o t i c e o f m a r k e t v a l u e a t l e a s t f i v e d a y s b e f o r e t h e m e e t i n g ,
t h e y c a n a p p e a l t o t h e C o u n t y B o a r d o f A p p e a l a n d E q u a l i z a t i o n .
" T h e b o a r d m a y f i n d i n s t a n c e s o f u n d e r v a l u e d p r o p e r t i e s . T h e b o a r d m u s t n o t i f y t h e
o w n e r o f t h e p r o p e r t y t h a t t h e v a l u e i s g o i n g t o b e r a i s e d . T h e p r o p e r t y o w n e r m u s t
h a v e t h e o p p o r t u n i t y t o a p p e a r b e f o r e t h e b o a r d i f t h e y s o w i s h .
" T h e l o c a l b o a r d s d o n o t h a v e t h e a u t h o r i t y t o a d d r e s s e x e m p t i o n i s s u e s . O n l y t h e
c o u n t y a s s e s s o r ( a n d t h e t a x c o u r t ) h a s t h e a u t h o r i t y t o e x e m p t p r o p e r t y . T h e y a l s o
h a v e n o j u r i s d i c t i o n o v e r s p e c i a l p r o g r a m s f o r w h i c h a n a p p l i c a t i o n p r o c e s s i s
r e q u i r e d ( V e t e r a n s M a r k e t V a l u e H o m e s t e a d E x c l u s i o n , G r e e n A c r e s , e t c . ) .
" A t a x p a y e r m a y a p p e a r i n p e r s o n , b y c o u n c i l , o r w r i t t e n c o m m u n i c a t i o n t o p r e s e n t h i s
o r h e r o b j e c t i o n t o t h e b o a r d . T h e f o c u s o f t h e a p p e a l m u s t c e n t e r o n t h e f a c t o r s
i n f l u e n c i n g t h e e s t i m a t e d m a r k e t v a l u e o r c l a s s i f i c a t i o n p l a c e d o n t h e p r o p e r t y .
" A l l c h a n g e s w i l l b e e n t e r e d i n t o t h e a s s e s s m e n t r e c o r d b y t h e c o u n t y a s s e s s o r '